FIRST QUANTUM MINERALS REPORTS FOURTH QUARTER AND YEAR-END 2023 RESULTS (In United States dollars, except where noted otherwise)
NEWS RELEASE
24-03
February 20, 2024
www.first-quantum.com
FIRST QUANTUM MINERALS REPORTS FOURTH QUARTER
AND YEAR-END 2023 RESULTS
(In United States dollars, except where noted otherwise)
Toronto, Ontario (February 20, 2024) - First Quantum Minerals Ltd. (“First Quantum” or “the Company”) (TSX: FM)
today reports results for the three months ended December 31, 2023 (“Q4 2023” or the "fourth quarter") of a net loss
attributable to shareholders of the Company of $1,447 million ($2.09 loss per share) and an adjusted loss 1 of $259
million ($0.37 adjusted loss per share 2). For the year ended December 31, 2023, the Company reported a net loss
attributable to shareholders of the Company of $954 million ($1.38 basic loss per share) and adjusted earnings 1 of
$261 million ($0.38 adjusted earnings per share2).
“2023 closed with the Company facing one of its biggest challenges in recent history. However, I am confident in the
resilience of First Quantum and the determination of our teams to work through these challenges. The Company
continues to take a proactive approach to managing its balance sheet and addressing its liquidity in a fulsome and
disciplined manner. As a continuation of these efforts, it is pleasing to share that since the reporting period, t he
Company has signed a $500 million copper prepay arrangement at competitive terms with Jiangxi Copper. This
arrangement is a reminder of the strategic nature of copper as supply challenges abound across the sector.
Constructive discussions with our lenders for an amendment and extension of our loan facilities, which are an
important component to our fulsome solution, are well -advanced and there is a high degree of alignment among all
parties. We continue with sales processes for some of our smaller assets and minority stake sales in our larger
assets, with strong interest from highly credible counterparties for both,” commented Tristan Pascall, Chief Executive
Officer of First Quantum. "In Zambia, we continue to be confident in the investment climate in the country and, as
such, we remain committed to our investment in the S3 Expansion, which is expected to generate significant free
cash flow once operational in the second half of 2025. At Cobre Panamá, the blockades around the mine have
dissipated, allowing for critical supply deliveries by port and by road. We continue to work closely with local authorities
in order to ship the concentrate stockpile from the site, which is required to fund critical environmental work. We
remain focused on the preservation, safe and responsible stewardship of Cobre Panamá. Finally, I would like to
thank everybody at First Quantum for their continued perseverance and hard work in these challenging times."
Q4 2023 SUMMARY
In Q4 2023, First Quantum reported gross profit of $87 million, EBITDA1 of $273 million, a net loss attributable to
shareholders of $2.09 per share, and an adjusted loss per share2 of $0.37. Relative to the third quarter of 2023 (“Q3
2023”), fourth quarter financial results were negatively impacted by the disruptions experienced at the Cobre Panamá
mine which led to the mine being placed in a phase of Preservation and Safe Management ("P&SM"). In addition,
disruptions at the mine's port prevented the shipment of concentrates since the beginning of November las t year.
Total copper production for the fourth quarter was 160,200 tonnes, a 28% decrease from Q3 2023. The quarter-over-
quarter decrease in production was attributable to lower production at all three of the Company's main operations,
1 EBITDA and adjusted earnings (loss) are non-GAAP financial measures. These measures do not have a standardized meaning prescribed by IFRS and might not be comparable
to similar financial measures disclosed by other issuers. See “Regulatory Disclosures”.
2 Adjusted earnings (loss) per share and copper C1 cash cost (copper C1) are non-GAAP ratios which do not have a standardized meaning prescribed by IFRS and might not be
comparable to similar financial measures disclosed by other issuers. See “Regulatory Disclosures”.
First Quantum Minerals Ltd. 24-03
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mainly Cobre Panamá. Copper C1 cash cost 2 of $1.82 per lb for Q4 2023 was $0.40 per lb higher than in Q3 2023
due to lower production and higher electricity costs at the Zambian operations following the signing of the new
ZESCO agreement, mitigated by lower maintenance costs.
Three-year guidance on production, copper C1 cash costs 1, copper all -in sustaining costs ("AISC") 1 and capital
expenditures that were previously disclosed on January 15, 2024 remain unchanged and exclude Cobre Panamá.
For 2024, copper production is forecast to be 370,000 to 420,000 tonnes while copper C1 cash costs1 are guided to
be $1.80 to $2.05 per lb. Capital cost guidance for 2024 is expected to be between $1,250 million and $1,400 million.
Q4 2023 OPERATIONAL HIGHLIGHTS
Total copper production for the fourth quarter was 160,200 tonnes, a 28% decrease from Q3 2023. The quarter-over-
quarter decrease in production was impacted by the ramp down in operations at Cobre Panamá to a phase of P&SM
due to illegal blockades around the mine site while lower production at Kansanshi and Sentinel also contributed to
the decline. Copper sales volumes in Q4 2023 totaled 127,721 tonnes, approximately 32,479 tonnes lower than
production, mainly due to port disruptions at Cobre Panamá that prevented the shipment of copper concentrates.
• Cobre Panamá produced 62,616 tonnes of copper in Q4 2023, a decrease of 50,118 tonnes from the
previous quarter as production was suspended at the end of November 2023 due to illegal blockades at the
Punta Rincón port and at the roads to the site that prevented the delivery of supplies that were necessary to
operate the power plant. Prior to the disruptions from the illegal blockades, Cobre Panamá operated at an
annualized throughput rate of 93 million tonnes for the month of October. This, combined with higher grades
and improving recoveries, allowed the operation to achieve monthly record production of 41,543 tonnes.
Copper production for the full year 2023 was 330,863 tonnes, down from 350,438 tonnes in 2022. Copper
C1 cash cost 1 of $1.45 per lb was $0.26 per lb higher than the previous quarter due to lower copper
production volumes and lower gold by -product credits. 2024 production guidance for Cobre Panamá has
been suspended as the site currently remains in a phase of P&SM. At the request of the Ministry of
Commerce and Industries ("MICI"), Cobre Panamá delivered a preliminary draft for the first phase of P&SM
on January 16, 2024. Previous illegal blockages around the mine have dissipated, allowing for the delivery
by road and at port of necessary supplies to conduct the P&SM program. The associated costs for the
program are estimated at $15 to $20 million per month and further reductions could follow depending on
environmental stewardship programs. Approximately 121 thousand dry metric tonnes of copper concentrate
remains onsite following disruptions at the Punta Rincón port. The sale of this concentrate will result in a net
cash inflow of approximately $225 million at current market prices.
• Kansanshi’s copper production of 31,887 tonnes in Q4 2023 was 7,713 tonnes lower than the previous
quarter as a result of lower throughput, grades and recoveries across all three circuits. Lower throughput
was primarily due to mining constraints in M17 resulting in slower mining rates and the stockpiling of material
from M15 and M17 due to acid volume restrictions. Kansanshi's production for 2023 of 134,827 tonnes was
within the revised guidance range of 130,000 to 140,000 tonnes. Copper C1 cash cost 1 of $2.43 per lb was
$0.80 higher than Q3 2023 mainly due to lower copper production volumes. Production guidance for 2024
is expected to be 130,000 to 150,000 tonnes of copper and 65,000 to 75,000 ounces of gold.
• Sentinel reported copper production of 59,964 tonnes in Q4 2023, 3,841 tonnes lower than the previous
quarter mainly due to lower throughput as production continued to be impacted by the mi ning of very hard
rock from the lower levels in Stages 1 and 2 of the open pit. Mining productivity, however, continued to
improve during the quarter with improved blast fragmentation and reduced congestion with the
commencement of the Stage 3 (Western Cut-back) mining. Sentinel copper production for 2023 of 214,046
tonnes was lower than the revised guidance range of 220,000 to 230,000 tonnes. Copper C1 cash cost 1 of
$1.85 per lb was $0.20 per lb higher than the preceding quarter, reflecting higher electric ity prices. Copper
production guidance for 2024 is 220,000 to 250,000 tonnes. The major focus for 2024 at Sentinel will be on
1 Copper C1 cash costs (C1), and copper all -in sustaining costs (AISC) are non -GAAP ratio which does not have a standard ized meaning prescribed by IFRS and might not be
comparable to similar financial measures disclosed by other issuers. See “Regulatory Disclosures”.
First Quantum Minerals Ltd. 24-03
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the development of Stage 3 (Western Cut -back) in order to enable improved mining productivities and
increased availability of softer material from higher elevations. The wet weather preparations and improved
storm water management processes have been implemented to mitigate the risk of water accumulation as
experienced in previous raining seasons.
• Enterprise produced 2,751 tonnes of nickel during the fourth quarter, an increase from 1,556 tonnes in Q3
2023 as the operation continues to ramp up. Production guidance in 2024 for Enterprise is 10,000 to 20,000
contained tonnes of nickel. Commercial production and full plant throughput is expected in 2024.
• At Ravensthorpe, as previously announced, a decision was made subsequent to the year-end to scale back
mining operations and associated processing activities as a result of continued low nickel prices. A new
operating plan has been dev eloped under which Ravensthorpe aims to maintain production from ore
stockpiles and suspend mining from the Shoemaker Levy ore body. The high-pressure acid leach circuit will
also be bypassed and ore will be exclusively processed through the atmospheric leach circuits. Production
from existing ore stockpiles is expected for 18 months after which time, mining at Hale Bopp and Halley ’s
ore bodies is expected to commence.
FINANCIAL HIGHLIGHTS
Compared to Q3 2023, fourth quarter financial results were considerably weaker due to the suspension of production
at the Cobre Panamá mine at the end of November 2023 when the mine was placed in P&SM. Financial results were
also impacted by approximately 121 thousand dry metric tonnes of copper concentr ate that remains unsold from
Cobre Panamá as a result of the disruptions at the Punta Rincón port. An impairment charge of $900 million was
recognized which includes $854 million at Ravensthorpe as a result of significant margin pressure due to weak nickel
prices, lower payabilities and high operating costs. Impairment expenses also include $46 million in respect of
exploration assets.
The Company's total and net debt1 increased during the fourth quarter due to a one-time payment of $567 million to
the Government of Panama on November 16, 2023 in respect to taxes and royalties for the period from December
2021 to October 2023.
• Gross profit for the fourth quarter of $87 million was 87% lower than in Q3 2023, while EBITDA 1 of $273
million for the same period was 72% lower.
• Cash flows used by operating activities of $185 million ($0.27 per share 2) for the quarter were $779 million
lower than Q3 2023.
• Net debt1 increased by $783 million during the quarter, taking the net debt 1 balance to $6,420 million as at
December 31, 2023. As at December 31, 2023, total debt was $7,379 million (total debt was $6,892 million
at September 30, 2023).
• An interim dividend of CDN$0.08 per share, in respect of the financial year ended December 31, 2023 was
paid on September 19, 2023 to shareholders of record on August 28, 2023. On January 15, 2024, the
Company announced that it has suspended its dividend as a result of Cobre Panamá being in a phase of
P&SM.
The current situation at Cobre Panamá has impacted the EBITDA 1 generating potential of the Company, putting at
risk the Company’s ability to meet the net debt 1 to EBITDA1 ratio covenant as defined in its current senior banking
facilities. Current forecasts for 2024, before taking into account future balance sheet initiatives, indicate the Company
may breach the prevailing net debt 1 to EBITDA1 ratio covenant during the coming twelve months, and failure to
address this would result in the existence of a material uncertainty that may cast a significant doubt about the
1 EBITDA is a non-GAAP financial measures and net debt is a supplementary financial measure. These measures do not have a standardized meaning prescribed by IFRS and
might not be comparable to similar financial measures disclosed by other issuers. See “Regulatory Disclosures”
2 Cash flows from operating activities per share, and copper C1 cash cost (copper C1) are non-GAAP ratios which do not have a standardized meaning prescribed by IFRS and
might not be comparable to similar financial measures disclosed by other issuers. See “Regulatory Disclosures”.
First Quantum Minerals Ltd. 24-03
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Company’s ability to continue as a going concern. Accordingly, disclosure of this material uncertainty has been made
in the notes to the consolidated financial statements.
Management has a strong expectation that the balance sheet initiatives initiated earlier this year will be realized in
the near term. The disclosure of material uncertainty does not include potential changes in the Company's covenants,
which are materially advanced in discussions with the Company's banking partners nor the f inancing initiatives
described in more detail below, which would significantly reduce the risk of breaching covenants if realized.
BALANCE SHEET INITIATIVES
With Cobre Panamá in a phase of P&SM, the Company is employing a number of measures to prudently allow for
the planned capital spending elsewhere across First Quantum ’s business, most notably the S3 Expansion at
Kansanshi, which will further strengthen cash flows when it is commissioned in 2025. The Company is advancing
several initiatives in 2024 to give optionality and flexibility:
• Copper prepayment agreement ("Prepayment Agreement"): After the reporting period, the Company
signed a $500 million 3- year Prepayment Agreement with Jiangxi Copper at competitive rates. The
agreement provides for the delivery of 50kt of copper anode per annum from Kansanshi payable at market
prices. The prepaid amount will reduce in line with deliveries over the second and third years of the
Prepayment Agreement. Proceeds will be used towards general corporate purposes and to increase liquidity.
• Dividend suspension: On January 15, 2024, the Board suspended the semi -annual dividend. The Board
will review the Company ’s financial policy on an ongoing basis and adjust the dividend approach when
appropriate.
• Capital expenditure reductions: Planned capital programs across the Company were reduced or re-
phased by approximately $400 million in 2024 and $250 million in 2025. The Company remains committed
to delivering the S3 Expansion project at Kansanshi in 2025.
• Operating costs and other reductions: Following a detailed review of all operating and administrative
costs, the Company has identified savings which will offset recent inflationary pressures. The cost savings
initiatives include a change in strategy at Ravensthorpe to temporarily remove higher cost production.
• Working capital: The Company is also targeting reductions in working capital requirements and savings in
the procurement of materials, supplies and third party service costs where possible.
• Assets and stake sales: A sales process for the Las Cruces mine in Spain is well -advanced with strong
interest given the strategic location and processing capabilities of the project. Following a number of inbound
expressions of interest, the Company is evaluating the possibility of a minority investment by strategic
investors in the Company's Zambian business.
• Financing activity: The Company continues to take a proactive approach to managing its balance sheet
and the refinancing of its near -term debt maturities. An ongoing proces s between the Company and its
banking partners is materially advanced, with a high degree of alignment regarding amendment and
extension. A conclusion on these amendments is expected in the near term. The Company is also assessing
a range of alternatives across the capital markets to maintain a robust financial position and preserve value
for its shareholders.
First Quantum Minerals Ltd. 24-03
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CONSOLIDATED FINANCIAL HIGHLIGHTS
QUARTERLY FULL YEAR
Q4 2023 Q3 2023 Q4 2022 2023 2022
Sales revenues 1,218 2,029 1,832 6,456 7,626
Gross profit 87 660 361 1,292 2,200
Net earnings (loss) attributable to shareholders of
the Company (1,447) 325 117 (954) 1,034
Basic earnings (loss) per share ($2.09) $0.47 $0.17 ($1.38) $1.50
Diluted earnings (loss) per share ($2.09) $0.47 $0.17 ($1.38) $1.49
Cash flows from (used by) operating activities3 (185) 594 237 1,427 2,332
Net debt1 6,420 5,637 5,692 6,420 5,692
EBITDA1,2 273 969 647 2,328 3,316
Adjusted earnings (loss)1 (259) 359 151 261 1,064
Adjusted earnings (loss) per share3 ($0.37) $0.52 $0.22 $0.38 $1.54
Realized copper price (per lb)3 $3.62 $3.70 $3.56 $3.76 $3.90
Net earnings (loss) attributable to shareholders of
the Company (1,447) 325 117 (954) 1,034
Adjustments attributable to shareholders of the
Company:
Adjustment for expected phasing of Zambian
value-added tax (“VAT”) receipts 20 (15) 56 (49) 190
Ravensthorpe deferred tax charge 160 – – 160 –
Total adjustments to EBITDA1 excluding
depreciation2 1,031 61 6 1,129 (155)
Tax adjustments 273 (12) (22) 271 (7)
Minority interest adjustments (296) – (6) (296) 2
Adjusted earnings (loss)1 (259) 359 151 261 1,064
1 EBITDA and adjusted earnings (loss) are non-GAAP financial measures, and net debt is a supplementary financial measure. These measures do not have a standardized
meaning under IFRS and might not be comparable to similar financial measures disclosed by other issuers. Adjusted earnings (loss) have been adjusted to exclude items from
the corresponding IFRS measure, net earnings (loss) attributable to shareholders of the Company, which are not considered by management to be reflective of underlying
performance. The Company has disclosed these measures to assist with the understanding of results and to provide further financial information about the results to investors
and may not be comparable to similar financial measures disclosed by other issuers. The use of adjusted earnings (loss) and E BITDA represents the Company’s adjusted
earnings (loss) metrics. See “Regulatory Disclosures”.
2 Adjustments to EBITDA in 2023 relate principally to an impairment expense of $854 million relating to Ravensthorpe and $46 mi llion to exploration assets, royalty expen se of
$22 million related to 2022 pursuant to Law 406 and royalties payable to ZCCM -IH for the year ended December 31, 2022, foreign exchange revaluations and a restructuring
expense of $49 million (2022 - foreign exchange revaluations and non-recurring costs relating to previously sold assets).
3 Adjusted earnings (loss) per share, realized metal prices, and cash flows from operating activities per share are non -GAAP ratios, which do not have a standardized meaning
prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. See “Regulatory Disclosures”.
4 Excludes the sale of copper anode produced from third-party concentrate purchased at Kansanshi. Sales of copper anode attributable to third-party concentrate purchases were
10,965 tonnes and 40,134 tonnes for the fourth quarter and full year ended December 31, 2023, respectively, (8,651 and 13,379 tonnes for the fourth quarter and full year ended
December 31, 2022).
First Quantum Minerals Ltd. 24-03
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CONSOLIDATED OPERATING HIGHLIGHTS
QUARTERLY FULL YEAR
Q4 2023 Q3 2023 Q4 2022 2023 2022
Copper production (tonnes)1 160,200 221,550 206,007 707,678 775,859
Cobre Panamá 62,616 112,734 89,652 330,863 350,438
Kansanshi 31,887 39,600 34,802 134,827 146,282
Sentinel 59,964 63,805 73,409 214,046 242,451
Other Sites 5,733 5,411 8,144 27,942 36,688
Copper sales (tonnes)2 127,721 218,946 198,912 674,316 782,236
Cobre Panamá 35,809 113,616 85,330 306,417 343,448
Kansanshi2 31,295 41,820 32,496 135,385 159,007
Sentinel 55,112 58,600 71,642 205,160 241,162
Other Sites 5,505 4,910 9,444 27,354 38,619
Gold production (ounces) 53,325 73,125 70,493 226,885 283,226
Cobre Panamá 30,986 45,996 38,302 129,854 139,751
Kansanshi 16,718 19,946 24,479 68,970 109,617
Guelb Moghrein 5,327 6,765 7,434 26,363 30,845
Other sites 294 418 278 1,698 3,013
Gold sales (ounces)3 45,365 77,106 59,568 223,052 270,775
Cobre Panamá 19,861 45,959 34,208 121,554 134,660
Kansanshi 19,396 23,704 16,156 76,169 101,015
Guelb Moghrein 5,539 7,292 8,601 23,546 30,852
Other sites 569 151 603 1,783 4,248
Nickel production (contained tonnes)4 7,313 7,046 5,705 26,252 21,529
Nickel sales (contained tonnes)5 5,719 5,749 6,840 23,220 20,074
Cash cost of copper production (C1) (per lb)6,7,8 $1.82 $1.42 $1.86 $1.82 $1.76
Total cost of copper production (C3) (per lb)6,7,8 $2.77 $2.29 $2.79 $2.76 $2.73
Copper all-in sustaining cost (AISC) (per lb)6,7,8 $2.52 $2.02 $2.42 $2.46 $2.35
1 Production is presented on a contained basis, and is presented prior to processing through the Kansanshi smelter.
2 Sales exclude the sale of copper anode produced from third-party concentrate purchased at Kansanshi. Sales of copper anode attributable to third-party concentrate purchases
were 10,965 tonnes and 40,134 tonnes for the fourth quarter and full year ended December 31, 2023, respectively, (8,651 tonnes and 13,379 tonnes for the fourth quarter and
full year ended December 31, 2022).
3 Excludes refinery-backed gold credits purchased and delivered under the precious metal streaming arrangement (see “Precious Metal Stream Arrang ement”).
4 Nickel production includes 2,751 tonnes and 4,527 tonnes of pre-commercial production from Enterprise for the fourth quarter and full year ended December 31, 2023, which is
not included in earnings (loss) or C1, C3 and AISC calculations. (nil tonnes for the year ended December 31, 2022).
5 Nickel sales (contained tonnes) includes 1,554 tonnes and 1,651 tonnes of pre -commercial sales from Enterprise for the fourth quarter and full year ended December 31, 2023,
respectively.
6 Copper all-in sustaining cost (copper AISC), copper C1 cash cost (copper C1), and total cost of copper (copper C3) are non -GAAP ratios, which do not have a standardized
meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. See “Regulatory Disclosures”.
7 Excludes the sale of copper anode produced from third-party concentrate purchased at Kansanshi. Sales of copper anode attributable to third-party concentrate purchases were
10,965 tonnes and 40,134 tonnes for the fourth quarter and full year ended December 31, 2023, respectively, (8,651 and 13,379 tonnes for the fourth quarter and full year ended
December 31, 2022)
8 Copper C3 and AISC for the year ended December 31, 2023 exclude $18 million royalty attributable to ZCCM -IH relating to the year ended December 31, 2022. Copper C3
and AISC for the year ended December 31, 2023 exclude the 2022 impact of $28 million royalty pursuant to Law 406 in Panama.
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REALIZED METAL PRICES1
QUARTERLY FULL YEAR
Q4 2023 Q3 2023 Q4 2022 2023 2022
Average LME copper cash price (per lb) $3.70 $3.79 $3.63 $3.85 $3.99
Realized copper price1 (per lb) $3.62 $3.70 $3.56 $3.76 $3.90
Treatment/refining charges (“TC/RC”) (per lb) ($0.13) ($0.15) ($0.12) ($0.15) ($0.13)
Freight charges (per lb) ($0.05) ($0.02) ($0.04) ($0.03) ($0.03)
Net realized copper price1 (per lb) $3.44 $3.53 $3.40 $3.58 $3.74
Average LBMA cash price (per oz) $1,974 $1,929 $1,728 $1,941 $1,800
Net realized gold price1,2 (per oz) $1,835 $1,764 $1,574 $1,786 $1,665
Average LME nickel cash price (per lb) $7.82 $9.23 $11.47 $9.74 $11.61
Net realized nickel price1 (per lb) $7.53 $8.96 $13.67 $9.07 $11.93
1 Realized metal prices are a non-GAAP ratio, do not have standardized meanings under IFRS and might not be comparable to similar financial measures disclosed by other
issuers. See “Regulatory Disclosures” for further information.
2 Excludes gold revenues recognized under the precious metal stream arrangement.
2024 GUIDANCE
Guidance is based on a number of assumptions and estimates as of December 31, 2023, including among other
things, assumptions about metal prices and anticipated costs and expenditures. Guidance involves estimates of
known and unknown risks, uncertainties and other factors, which may cause the actual results to be materially
different.
Production, cash cost and capital expenditure guidance for 2024 to 2026 remain unchanged from the News Release
"First Quantum Minerals Announces 2023 Preliminary Production, 2024- 2026 Guidance and Balance Sheet
Initiatives" dated January 15, 2024 and is presented excluding Cobre Panamá as the mine remains in a phase of
P&SM with production halted. The associated funding of P&SM is expected to range from $15 to $20 million per
month and further reductions could follow depending on environmental stewardship programs.
2024 Copper production guidance is between 370,000 to 420,000 tonnes and is expected to increase to between
400,000 to 460,000 tonnes in 2025 and 2026 as the S3 Expansion at Kansanshi comes online. For 2024, copper C1
cash costs1 are guided to be $1.80 to $2.05 per lb. Total copper C 1 cash costs1 and copper AISC1 unit cost ranges
are in line with prior year guidance when excluding Cobre Panamá. Improvements in operating costs such as fuel,
maintenance, contractors and labour mitigated the impact of lower by -product credits from Kansanshi and lower
production at Sentinel.
Capital expenditure continues to experience inflationary cost increases driven by higher shipping rates, steel prices,
power costs, labour rates and general inflation. Guidance reflects these cost increases as well as additional scope
increases and the timing of expenditures, including approximately $235 million of expenditure carried over from
2023. However, strategic measures have been implemented to offset the impact of these inflationary increases and
deferred expenditure through optimizing and prioritizing capital expenditure.
Total capital expenditure for the S3 Expansion project remains unchanged at $1.25 billion, with approximately $215
million spent to date. The S3 Expansion includes the development and construction of the S3 process plant circuit
and mining fleet acquisitions. Across the three-year guidance period, capital expenditure for the S3 Expansion project
is expected to be approximately $780 million with the majority of the spend planned over 2024 and 2025. Pre- strip
activities for the South East Dome pit are expected to continue through 2025, of which $220 million is included in the
S3 project capital within the guidance period. First production from S3 continues to be expected in H2 2025.
1 Realized metal price, C1 cash cost (C1), and All -in sustaining cost (AISC) are non-GAAP ratio which does not have a standardized meaning prescribed by IFRS and might not
be comparable to similar financial measures disclosed by other issuers. See “Regulatory Disclosures”.
First Quantum Minerals Ltd. 24-03
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Interest expense on debt for the full year 2024 is expected to be approximately $610 - $630 million and excludes
interest accrued on related party loans to Cobre Panamá and Ravensthorpe, a finance cost accreted on the precious
metal streaming arrangement, capitalized interest expense and accretion on asset retirement obligation.
Cash outflow on interest paid is expected to be approximately $555 - $575 million for the full year 2024. This figure
excludes interest paid on related party loans to Cobre Panamá and Ravensthorpe and capitalized interest paid.
Capitalized interest is expected to be approximately $55 million for the full year 2024.
The effective tax rate for 2024 excluding Cobre Panamá and interest expense is expected to be approximately 30%.
The full year 2024 depreciation expense excluding Cobre Panamá is expected to be between $630 to $660 million.
Whilst under P&SM, depreciation at Cobre Panamá is expected to be $90 million to $120 million on an annualized
basis.
PRODUCTION GUIDANCE
000’s 2024 2025 2026
Copper (tonnes) 370 – 420 400 – 460 400 – 460
Gold (ounces) 95 – 115 120 – 140 140 – 165
Nickel (contained tonnes) 22 – 37 26 – 41 36 – 51
PRODUCTION GUIDANCE BY OPERATION1
Copper production guidance (000’s tonnes) 2024 2025 2026
Kansanshi 130 – 150 170 – 200 180 – 210
Trident - Sentinel 220 – 250 210 – 240 210 – 240
Other sites 20 20 10
Gold production guidance (000’s ounces)
Kansanshi 65 – 75 85 – 95 90 – 105
Guelb Moghrein 28 – 38 34 – 44 49 – 59
Other sites 2 1 1
Nickel production guidance (000’s contained tonnes)
Ravensthorpe 12 – 17 11 – 16 11 – 16
Trident - Enterprise 10 – 20 15 – 25 25 – 35
1 Production is stated on a 100% basis as the Company consolidates all operations.
CASH COST1 AND ALL-IN SUSTAINING COST1
Total Copper 2024 2025 2026
C1 (per lb)1 $1.80 – $2.05 $1.80 – $2.05 $1.80 – $2.05
AISC (per lb)1 $2.70 – $3.00 $2.85 – $3.15 $2.80 – $3.10
Total Nickel 2024 2025 2026
C1 (per lb)1 $7.00 – $8.50 $5.50 – $7.00 $5.00 – $6.25
AISC (per lb)1 $8.40 – $10.40 $7.70 – $9.70 $6.50 – $7.80
1 C1 cash cost (C1), and all-in sustaining cost (AISC) are non-GAAP ratios, and do not have a standardized meaning prescribed by IFRS and might not be comparable to similar
financial measures disclosed by other issuers. See “Regulatory Disclosures”.
PURCHASE AND DEPOSITS ON PROPERTY , PLANT & EQUIPMENT
2024 2025 2026
Capitalized stripping1 180 – 230 180 – 230 280 – 310
Sustaining capital1 260 – 290 450 – 480 280 – 320
Project capital1 810 – 880 570 – 590 290 – 320
T otal capital expenditure 1,250 – 1,400 1,200 – 1,300 850 – 950
1 Capitalized stripping, sustaining capital and project capital are non-GAAP financial measures which do not have a standardized meaning prescribed by IFRS and might not be
comparable to similar financial measures disclosed by other issuers. See “Regulatory Disclosures”.